A significant reduction in Christmas turkey orders for 2014 is set to lead to the closure of Bernard Matthews’ Lincs turkeys processing plant in Lincolnshire, with the loss of up to 80 jobs.
The company said the processing site at Grainthorpe was “no longer economically viable”, with Lincs’ processing operations to be integrated into sites in Norfolk and Suffolk.
“The company is currently entering into consultation with affected staff who will be offered the opportunity to relocate to one of our other sites,” Bernard Matthews said, adding the consultation would run for 30 days.
Despite the site facing closure, the company said it remained “firmly committed” to the overall Lincs Turkey business, whose farming operation would remain unchanged. A spokesman also stressed that while Lincs had seen a drop-off in Christmas orders, this was not the case for the rest of the Bernard Matthews business.
Bernard Matthews currently employs a workforce of 2,130 staff. Its most recent full-year results for the 12 months to 30 June 2013 revealed a £20.4m loss before tax.
Operating losses stood at £11.7m, compared with a profit of £5.3m for the previous 12 months, prompting the firm to embark on a turnaround plan designed to return it to profitability for 2013/14.
Chairman David Joll said in November the “disappointing” results were due to factors including poor weather and high feed costs, which drove up production costs, plus poor cost control and planning errors.
Lincs Turkeys specialises in free-range and fresh turkey products, and was acquired by Bernard Matthews in April 2010.
Bernard Matthews’ then-UK managing director, Jeff Halliwell, said at the time that the acquisition would bring “additional skills and expertise to the group”, which would enhance and support its long-term growth plans.
“It will allow us to expand our offering in the fresh and free-range turkey markets, areas of particular importance to Bernard Matthews, as we continue to promote the healthy benefits of turkey.”
No comments yet